The expiration of the March futures option helped derivative coffee markets to move as speculated, while the negative effects of the covid-19 pandemic are still heavy. confirming something, especially with short-term speculation, still holds a large amount of net buying in London market …
For the whole week 7, London market had 2 decreasing sessions and 3 gaining sessions. Robusta coffee futures for immediate delivery in March increased by $ 1, or up 0.07%, to $ 1,343 / ton and for May delivery increased by $ 2, or up 0.15%, to $ 1,369. / ton, very slight increases. Trading volume above average.
On the contrary, New York market had 1 down session and 3 up sessions. Arabica coffee futures for delivery in May increased all 6.1 cents, or 4.96%, to 129.15 cents / lb and July futures increased by all 6 cents, or 4.8%. , to 131 cents / lb, strong gains. Trading volume very high above average.
The price of coffee beans in the Central Highlands market increased from 0 to 100 VND, up to fluctuate in the frame 31,600 – 32,200 VND / kg.
Coffee prices continued to fluctuate in opposite directions as speculators on the two futures exchanges corrected their position balance before the expiration of the March option contract.
Arabica coffee prices continued to rise due to excessive net selling speculation in the face of increasing export pressure from producing countries in America – Latin region. On the contrary, the price of Robusta coffee is difficult to increase when the net buying volume is also excessive as the market speculates that the supply will be ample when Vietnam has just harvested a new crop with selling pressure to cover the debt. year-end and the need for cash to spend on the long traditional Tet holiday.
The US Bean Coffee Association (GCA) reported inventory at ports in January dropped another 2.26%, to registration at 5,843,171 bags. This inventory does not include the large volume of coffee being transported in transit containers across North America, and the roaster’s on-site inventory is estimated at 1.2 million bags. While US and Canadian demand from this supply is estimated at 585,000 bags per week, this total will cover more than 10 weeks of roasting operations, considered by most to be a very safe stockpile.
The latest Trader Commitment Report (CFTC) from the Arabica coffee market in New York showed that as of Tuesday, 9 February, the non-commercial speculation division had reduced their net buying position by 13, 47% down registered to net buy at 19,752 lots, equivalent to 5,559,604 bags. This net long position is likely to have declined further after a period of more active trade since then.
The latest CFTC report from Robusta coffee market in London shows that as of the same reporting period, short-term speculation of money management funds has reduced their net selling position by 32.8%, down to registration. net sold at 11,835 lots, equivalent to 1,972,500. This net short position is most likely eased after the overall trade has been flat but has been somewhat more positive since then.
Inventory of Robusta coffee certified and tracked by the London Exchange, as of Monday 15/02, has decreased by 300 tons, or 0.21% from a week earlier, to registration at 143,070 tons (equivalent to equivalent to 2,384,500 bags, 60 kg bags).